Summary
Cardinal Health Inc. (CAH) reported its first quarter fiscal year 2020 results, marked by a significant GAAP operating loss of $5.3 billion. This loss was primarily driven by a substantial $5.63 billion pre-tax charge related to an estimated liability for opioid lawsuits and claims. Despite this GAAP loss, the company reported a 6% increase in non-GAAP operating earnings to $577 million, driven by cost-saving measures and growth in its distribution and services businesses. Revenue saw a 6% increase to $37.3 billion, largely due to strong performance in pharmaceutical distribution and specialty pharmaceutical customers. Key financial highlights include a decrease in cash and equivalents from $2.5 billion to $1.2 billion, attributed to operational cash usage and significant share repurchases. The company also announced an agreement in principle for a global settlement framework to resolve opioid lawsuits with states and political subdivisions, involving a cash component of up to $5.56 billion over eighteen years. While the GAAP results were heavily impacted by the opioid litigation accrual, the underlying operational performance, as reflected in non-GAAP metrics, showed resilience and growth.
Financial Highlights
47 data points| Revenue | $37.34B |
| Cost of Revenue | $35.66B |
| Gross Profit | $1.68B |
| SG&A Expenses | $1.11B |
| Operating Income | -$5.26B |
| Interest Expense | $66.00M |
| Net Income | -$4.92B |
| EPS (Basic) | $-16.65 |
| EPS (Diluted) | $-16.65 |
| Shares Outstanding (Basic) | 296.00M |
| Shares Outstanding (Diluted) | 296.00M |
Key Highlights
- 1Reported a GAAP operating loss of $5.3 billion, primarily due to a $5.63 billion pre-tax charge for opioid litigation.
- 2Non-GAAP operating earnings increased by 6% to $577 million, driven by cost savings and growth in distribution and services.
- 3Total revenue increased by 6% to $37.3 billion, supported by pharmaceutical distribution and specialty pharmaceutical customer growth.
- 4Agreed in principle to a global settlement framework for opioid lawsuits, with a cash component of up to $5.56 billion over 18 years.
- 5Cash and equivalents decreased to $1.2 billion from $2.5 billion, impacted by $653 million in net cash used in operating activities and $350 million in share repurchases.
- 6Medical segment profit increased by 26% to $170 million.
- 7Non-GAAP diluted EPS decreased by 2% to $1.27 per share.